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Martin Dean, CFA, is a portfolio manager who is writing an investment policy statement (IPS) for Albert Francis, a new client. The least likely reason why Dean should prepare an IPS is to:

A set the target asset allocation for Francis’s portfolio.

An IPS requires an investor to consider and articulate his objectives and constraints. It also provides an objective standard by which the portfolios performance will be judged by specifying a benchmark portfolio. Guidance for Standard III(C) Suitability requires members to prepare IPS when beginning advisory relationships with clients. Asset allocation is determined after strategy is developed and capital market conditions are assessed.

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